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This study analyzes US demand for insulation products used principally for their thermal performance in residential buildings by material, housing type, project type, area of building, and region.
Materials broken out include:
- fiberglass
- foamed plastics
- cellulose
- mineral wool
- other materials (e.g., reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)
Materials are also broken out by product form (batts, blankets, rigid boards, loose fill, blow-in, and spray-applied) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).
The housing types analyzed are:
- single-family
- multifamily
- manufactured housing
Project types include both new housing construction and retrofit.
Demand by area of building encompasses the following:
- attic and roof
- exterior wall
- other areas (e.g., floor joists, basements, crawlspaces, interior walls, garages, and all other insulation applications)
Demand for insulation is also broken out for the following US geographic regions and subregions:
- Northeast (Middle Atlantic and New England)
- Midwest (East North Central and West North Central)
- South (South Atlantic, East South Central, and West South Central)
- West (Mountain and Pacific)
Excluded from the scope of the study are insulation used primarily for its acoustic properties and insulation used in and around HVAC equipment, including duct work.
Historical data for 2007, 2012, and 2017 and forecasts to 2022 are presented in current dollars (which are not adjusted to account for inflation). Historical and forecast data are also presented in volume terms by the following measures: pounds, square feet R-1 value, and square feet. In pounds and square feet R-1 measures, reflective insulation and radiant barriers are excluded.
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Residential Insulation in the US
Residential Insulation Scope
This study analyzes US demand for insulation products used principally for their thermal performance in residential buildings by material, housing type, project type, area of building, and region. This industry study presents historical demand data (2007, 2012, and 2017) and forecasts for 2022 by material, product type, housing type, area of building, and by region.
Demand is provided in volume terms by the following measures: pounds, square feet R-1 value, and square feet. The study also evaluates company market share and provides analysis on industry competitors including American Rockwool, Applegate Insulation, Atlas Roofing, BASF, Carlisle, CertainTeed, Covestro, DowDuPont, Fiberlite Technologies, Huntsman, Johns Manville, Kingspan, Knauf Insulation, Nu-Wool, Owens Corning, ROCKWOOL, Sealed Air, and US Greenfiber.
Data from the US Census Bureau were consulted in the preparation of this study and a list of related codes is presented here for informational purposes. However, these codes may not include all products covered in this report or may exclude some products of interest and the data have thus been adjusted accordingly.
Residential Insulation Methodology
Most Freedonia studies utilize a similar methodology: historical data are collected from various industry, government, and other relevant sources, and forecasts are developed based on trends in key indicators, ratio and regression analysis, and interviews with industry participants.
Information and data on residential insulation were obtained from numerous primary and secondary sources, including industry participants, government agencies, trade associations, online databases, company annual reports and investor presentations, and other Freedonia Group studies.
Once overall insulation demand was calculated, estimates were developed for each housing type and area of building based on the intensity of insulation use in each segment. Demand estimates for specific materials were estimated based on available industry data and primary interviews with industry experts.
Product demand in pounds was calculated using R-1 conversion factors – which were gleaned from published industry data and product specification sheets – for each material and product type.
Once demand in terms of weight was estimated, demand in value terms was calculated based on average product prices. Pricing data was obtained from RSMeans and company websites. These prices were then discounted based on internal estimates of both retail and distributor markups to calculate demand in dollar terms at the manufacturers’ level. Demand in square feet is estimated in a similar fashion – accounting for pricing trends and internal estimates of material pricing markups. Additionally, adjustments were made based on a subregional analysis of:
- the number of floors per housing unit
- average housing unit size
- the number of finished basements in single-family housing units
- housing stock by type
- age of housing stock
Residential Insulation Coverage
Materials broken out include:
- fiberglass
- foamed plastics
- cellulose
- mineral wool
- other materials (e.g., reflective insulation, radiant barriers, perlite, vermiculite, and all other insulation materials)
Materials are also broken out by product form (batts, blankets, rigid boards, loose fill, blow-in, and spray-applied) and, for foamed plastics, by type of resin (rigid urethanes and polystyrene).
The housing types analyzed are:
- single-family
- multifamily
- manufactured housing
Project types include both new housing construction and retrofit.
Demand by area of building encompasses the following:
- attic and roof
- exterior wall
- other areas (e.g., floor joists, basements, crawlspaces, interior walls, garages, and all other insulation applications)
Demand for insulation is also broken out for the following US geographic regions and subregions:
- Northeast (Middle Atlantic and New England)
- Midwest (East North Central and West North Central)
- South (South Atlantic, East South Central, and West South Central)
- West (Mountain and Pacific)
How Will the Economy Impact Demand for Residential Insulation?
The residential insulation outlook is dependent upon a number of macroeconomic assumptions, including environmental and regulatory issues. This study will address what these assumptions are as well as their overall importance in the market.
Following double-digit declines in demand during the 2007-2009 recessionary period, residential insulation demand increased in 2010 as residential building construction spending rose for the first time since 2006. Demand dipped once again in 2011 due to a slight decline in single-family housing starts, but rose sharply in 2012 in tandem with a 28% increase in conventional housing starts.
In 2017, the residential insulation market surpassed pre-recession levels, driven by annual gains in residential building construction of 13% during the 2012-2017 period.
R-1 Value
Through 2022, demand for residential insulation is forecast to advance 2.8% per annum of R-1 value. These gains are supported by:
- Building codes requiring insulation with higher R-values, particularly in subregions with harsh climates.
- Growth in the retrofit market, as rising consumer awareness of the energy efficiency benefits of insulation will prompt many homebuilders and DIYers to install high R-value insulation in attics and exterior walls.
- The incorporation of more insulation per unit built to better protect homes against heat transfer and (in many areas) to form the required air barriers to minimize the incidence of leaks.
- Advances in fiberglass insulation demand, as the use of thicker, higher R-value batts and blankets is increasing in exterior walls and attic.
Insulation Pricing Trends
The rise in insulation prices will be spurred in party by increases in construction activity, which will boost demand for building materials and lead to price hikes. Price advances will be restrained by strong intermaterial competition.
If manufacturers of one product – such as fiberglass insulation – raise prices too much, producers of competitive insulation types – such as cellulose insulation – can offer their products at a price advantage, limiting overall price gains.
Environmental & Regulatory Issues
Government legislation and regulations not only affect demand for insulation, but also the development, transport, sale, and disposal of these materials. This study will outline environmental concerns facing the industry today, such as:
- Building Codes
- Green Building
- Indoor Air Quality
- Health & Safety Issues
Residential Insulation Market Overview
The residential insulation market enjoyed healthy gains during the 2012-2017 period, bolstered by increases in residential building construction activity. Through 2022, demand for insulation in the residential market is forecast to advance 3.9% per annum. SprayFoam.com cited The Freedonia Group, saying, "Foamed plastics are projected to be the fastest growing material in the residential insulation market through 2022. The materials’ ability to fully seal gaps and air leaks will support demand gains as recent IECC measures call for significant improvements in the reduction of air leaks in single-family and multifamily housing."
?mw=604&mh=340 "Residential Insulation Market Overview")
Gains will be driven by:
- healthy growth in single-family housing starts
- the installation of more insulation per housing unit to comply with stricter International Energy Conservation Codes (IECC adopted by a number of state and local building regulators
- efforts to upgrade insulation in existing houses, as homeowners seek to reduce utility bills by improving energy efficiency
- increasing interest in green building practices
This Study will answer questions like:
- What is the fastest growing material in the residential insulation market?
- How will eco-friendly technologies change the future of the insulation industry?
- Which materials are the most cost-effective?
- How does the retrofit market provide demand opportunities for insulation materials?
- Where are the best regional opportunities in the residential insulation market?
Table of Contents
EXECUTIVE SUMMARY
OVERVIEW
Key Findings
Historical Market Trends
Residential Insulation Product Forecasts
R-1 Value
Pounds & Square Feet
Market Value
Pricing Trends
Environmental & Regulatory Issues
Overview
Building Codes & Green Building
Indoor Air Quality & Health & Safety Issues
Climate Zones & R-Values
FIBERGLASS
Key Findings
Definition & Scope
Fiberglass Market Size & Forecasts by Value, Volume, & Area
Material Advantages & Disadvantages
Product Trends (Batts, Blankets, Loose Fill, & Rigid Boards)
New Versus Retrofit Projects
Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)
Fiberglass Insulation by Area of Residential Building
Market Share
FOAMED PLASTIC
Key Findings
Definition & Scope
Foamed Plastic Market Size & Forecasts by Value, Volume, & Area
Material Advantages & Disadvantages
Product Trends
Rigid Urethane - Rigid Board Versus Sprayed-On Product Forms
Rigid Urethane Boards
Sprayed-On Urethane - Open-Cell Versus Closed-Cell
Polystyrene - Expanded Polystyrene (EPS) Versus Extruded Polystyrene (XPS)
Impact of Growing Structural Insulated Panels (SIPs) Market
New Versus Retrofit Projects
Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)
Foamed Plastic Insulation by Area of Residential Building
Market Share
CELLULOSE
Key Findings
Definition & Scope
Cellulose Market Size & Forecasts by Value, Volume, & Area
Material Advantages & Disadvantages
Product Trends (Blow-In Versus Spray-Applied)
New Versus Retrofit Projects
Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing)
Cellulose Insulation by Area of Residential Building
Market Share
MINERAL WOOL
Key Findings
Definition & Scope
Mineral Wool Market Size & Forecasts by Value, Volume, & Area
Material Advantages & Disadvantages
Product (Batts & Blankets, Loose Fill, & Other Forms) & Material (Rock Wool & Slag Wool) Trends
New Versus Retrofit Projects
Demand by Housing Type (Single-Family, Multifamily, & Manufactured Housing
Mineral Wool Insulation by Area of Residential Building
Market Share
OTHER MATERIALS
Key Findings
Other Insulation Materials Market Size & Forecasts
Overview
Reflective Insulation & Radiant Barriers
Perlite & Vermiculite
All Other (Wool, Cork, Cotton, Recycled Denim, Hemp, & All Other Materials)
HOUSING TYPE
Key Findings
Outlook for Insulation by Housing Type
Single-Family
Multifamily
Manufactured Housing
NEW & RETROFIT INSULATION MARKETS
Key Findings
Outlook for Insulation by Project Type
New Housing
Retrofit Projects
AREA OF RESIDENTIAL BUILDING INSULATION TRENDS
Key Findings
Outlook for Insulation by Area of Residential Building
Attic & Roof
Exterior Walls
Other
REGIONS
Key Findings
Regional Demand Forecasts
Northeast
Northeast: Overview
Northeast: Demand Forecast
Midwest
Midwest: Overview
Midwest: Demand Forecast
South
South: Overview
South: Demand Forecast
West
West: Overview
West: Demand Forecast
INDUSTRY STRUCTURE
Key Findings & Industry Composition
Market Share
Competitive Strategies
Product Differentiation
Intermaterial Competition
New Product Development
Marketing
Distribution
Acquisitions & Divestitures
List of Industry Participants
APPENDIX
Scope
Methodology
Sources
Associations & Agencies
Related Freedonia Group Studies
Definitions
Abbreviations
Macroeconomic Assumptions
Economic Environment
Demographics
Residential Building Construction
Residential Improvements & Repairs
Housing Starts
Housing Stock
Consumer Spending
Consumer Financing
List of Tables
OVERVIEW
Table 2-1 | Residential Insulation Market, 2007 - 2017
Table 2-2 | Residential Insulation Demand by Material, 2007 - 2022 (billion square feet R-1)
Table 2-3 | Residential Insulation Volume & Area Demand by Material, 2007 - 2022
Table 2-4 | Residential Insulation Demand by Material, 2007 - 2022 (million dollars)
Table 2-5 | Average Insulation Prices by Material, 2007 - 2022
Table 2-6 | US Residential Insulation Market: Environmental & Regulatory Issues
FIBERGLASS
Table 3-1 | Residential Fiberglass Insulation Demand, 2007 - 2022
Table 3-2 | Fiberglass Insulation Advantages & Disadvantages
Table 3-3 | Residential Fiberglass Insulation Demand by Product Form, 2007 - 2022
Table 3-4 | Residential Fiberglass Insulation Demand by Project Type, 2007 - 2022
Table 3-5 | Residential Fiberglass Insulation Demand by Housing Type, 2007 - 2022
Table 3-6 | Fiberglass Insulation Demand by Area of Residential Building, 2007 - 2022
FOAMED PLASTIC
Table 4-1 | Residential Foamed Plastic Insulation Demand, 2007 - 2022
Table 4-2 | Residential Foamed Plastic Insulation Demand Drivers & Restraints
Table 4-3 | Foamed Plastic Materials Advantages & Disadvantages
Table 4-4 | Residential Rigid Urethane Insulation Demand, 2007 - 2022
Table 4-5 | Residential Rigid Urethane Board Insulation Demand, 2007 - 2022
Table 4-6 | Residential Sprayed-On Urethane Insulation Demand by Type (Open-Cell & Closed-Cell), 2007 - 2022
Table 4-7 | Polystyrene: Expanded Polystyrene & Extruded Polystyrene Residential Insulation Demand, 2007 - 2022
Table 4-8 | Residential Foamed Plastic Insulation Demand by Project Type, 2007 - 2022
Table 4-9 | Residential Foamed Plastic Insulation Demand by Housing Type, 2007 - 2022
Table 4-10 | Foamed Plastic Insulation Demand by Area of Residential Building, 2007 - 2022
CELLULOSE
Table 5-1 | Residential Cellulose Insulation Demand, 2007 - 2022
Table 5-2 | Residential Cellulose Insulation Demand Drivers & Restraints
Table 5-3 | Cellulose Material Advantages & Disadvantages
Table 5-4 | Residential Cellulose Insulation Demand by Product Form, 2007 - 2022
Table 5-5 | Residential Cellulose Insulation Demand by Project Type, 2007 - 2022
Table 5-6 | Residential Cellulose Insulation Demand by Housing Type, 2007 - 2022
Table 5-7 | Cellulose Insulation Demand by Area of Residential Building, 2007 - 2022
MINERAL WOOL
Table 6-1 | Residential Mineral Wool Insulation Demand, 2007 - 2022
Table 6-2 | Residential Mineral Wool Insulation Demand Drivers & Restraints
Table 6-3 | Mineral Wool Material Advantages & Disadvantages
Table 6-4 | Residential Mineral Wool Insulation Demand by Product Form & Material, 2007 - 2022
Table 6-5 | Residential Mineral Wool Insulation Demand by Project Type, 2007 - 2022
Table 6-6 | Residential Mineral Wool Insulation Demand by Housing Type, 2007 - 2022
Table 6-7 | Residential Mineral Wool Insulation Demand by Area of Residential Building, 2007 - 2022
OTHER MATERIALS
Table 7-1 | Other Residential Insulation Material Demand, 2007 - 2022
Table 7-2 | Residential Reflective Insulation & Radiant Barrier Demand, 2007 - 2022
Table 7-3 | Residential Perlite & Vermiculite Insulation Demand, 2007 - 2022
Table 7-4 | All Other Residential Insulation Materials Demand, 2007 - 2022
HOUSING TYPE
Table 8-1 | Residential Insulation Demand by Housing Type, 2007 - 2022
Table 8-2 | Single-Family Housing Insulation Demand by Project Type, 2007 - 2022
Table 8-3 | Multifamily Housing Insulation Demand by Project Type, 2007 - 2022
Table 8-4 | Manufactured Housing Insulation Demand by Project Type, 2007 - 2022
NEW & RETROFIT INSULATION MARKETS
Table 9-1 | Residential Insulation Demand by Project Type, 2007 - 2022
Table 9-2 | New Housing Insulation Demand, 2007 - 2022
Table 9-3 | Residential Retrofit Insulation Demand, 2007 - 2022
AREA OF RESIDENTIAL BUILDING INSULATION TRENDS
Table 10-1 | Insulation Demand by Area of Residential Building, 2007 - 2022
Table 10-2 | Residential Insulation Demand in Attics & Roofs, 2007 - 2022
Table 10-3 | Residential Insulation Demand in Exterior Walls, 2007 - 2022
Table 10-4 | Residential Insulation Demand in Other Building Areas, 2007 - 2022
REGIONS
Table 11-1 | Residential Insulation Demand by Region, 2007 - 2022
Table 11-2 | Northeast Residential Insulation Demand, 2007 - 2022 (million dollars)
Table 11-3 | Midwest Residential Insulation Demand, 2007 - 2022 (million dollars)
Table 11-4 | South Residential Insulation Demand, 2007 - 2022 (million dollars)
Table 11-5 | West Residential Insulation Demand, 2007 - 2022 (million dollars)
INDUSTRY STRUCTURE
Table 12-1 | US Residential Insulation Product Sales for Selected Companies, 2017 (million dollars)
Table 12-2 | Selected Acquisitions & Divestitures
APPENDIX
Table 13-1 | Study Scope: US Geographic Regions & Subregions
Table 13-2 | Relevant Industry Codes
Table 13-3 | Relevant HS/HTS Codes
Table 13-4 | Insulation R-Values by Material
Table 13-5 | Abbreviations Used in Study
Table 13-6 | Macroeconomic Indicators, 2007 - 2022 (billion 2009 dollars)
Table 13-7 | Population & Households, 2007 - 2022 (million persons)
Table 13-8 | Residential Building Construction Expenditures, 2007 - 2022 (billion dollars)
Table 13-9 | Residential Improvement & Repair Expenditures, 2007 - 2022 (billion dollars)
Table 13-10 | New Housing Indicators, 2007 - 2022
Table 13-11 | Housing Stock by Type, 2007 - 2022 (million units)
Table 13-12 | Personal Consumption Expenditures, 2007 - 2022 (billion dollars)
Table 13-13 | Consumer Financing Environment, 2007 - 2017
List of Figures
EXECUTIVE SUMMARY
Figure 1-1 | Key Trends in US Residential Insulation Market, 2017 - 2022
OVERVIEW
Figure 2-1 | US Residential Insulation Market Overview
Figure 2-2 | Residential Insulation Market, 2007 - 2017 (million dollars)
Figure 2-3 | Residential Insulation Volume & Area Demand Shares, 2017
Figure 2-4 | Continental US Climate Zone Map & Suggested R-Values
FIBERGLASS
Figure 3-1 | Key Trends in the US Residential Fiberglass Insulation Market
Figure 3-2 | Residential Fiberglass Insulation Value, Volume, & Area Demand Shares, 2007 - 2022
Figure 3-3 | Residential Fiberglass Insulation Volume Demand by Product Form, 2012 - 2022 (million pounds)
Figure 3-4 | New Housing Versus Retrofit Fiberglass Demand Volatility, 2007 - 2017
Figure 3-5 | Single-Family Demand Share of Total Residential Fiberglass Insulation Market, 2007 - 2022 (million dollars)
Figure 3-6 | Fiberglass Insulation Volume Demand by Area of Residential Building, 2017 (billion pounds)
Figure 3-7 | Residential Fiberglass Insulation Market Share, 2017 (billion dollars)
FOAMED PLASTIC
Figure 4-1 | Key Trends in the US Residential Foamed Plastic Insulation Market
Figure 4-2 | Open-Cell Versus Closed-Cell Value Demand Shares, 2007 - 2022 (million dollars)
Figure 4-3 | EPS Versus XPS Residential Insulation Value Demand Shares, 2007 - 2022 (million dollars)
Figure 4-4 | Residential Foamed Plastic Insulation Market Share, 2017 (million dollars)
CELLULOSE
Figure 5-1 | Key Trends in the US Residential Cellulose Insulation Market
Figure 5-2 | Blow-In Versus Spray-Applied Cellulose Insulation Demand Shares, 2007 - 2022 (million dollars)
Figure 5-3 | New Housing Cellulose Insulation Demand Versus Single-Family Housing Starts, 2007 - 2022
Figure 5-4 | Residential Cellulose Insulation Market Share, 2017 (million dollars)
MINERAL WOOL
Figure 6-1 | Key Trends in the US Residential Mineral Wool Insulation Market
Figure 6-2 | Residential Mineral Wool Insulation Value & Volume Demand Shares by Product Form, 2017
Figure 6-3 | Residential Mineral Wool Insulation Market Share, 2017 (million dollars)
OTHER MATERIALS
Figure 7-1 | Key Trends for Other Residential Insulation Materials
HOUSING TYPE
Figure 8-1 | Key Single-Family, Multifamily, & Manufactured Housing Insulation Trends
NEW & RETROFIT INSULATION MARKETS
Figure 9-1 | Key Trends in New Housing & Retrofit Insulation Markets
Figure 9-2 | New Housing Insulation Demand Share by Material, 2007 - 2022 (million dollars)
Figure 9-3 | Retrofit Insulation Demand Versus Residential Improvement & Repair Spending, 2007 - 2022
AREA OF RESIDENTIAL BUILDING INSULATION TRENDS
Figure 10-1 | Key Insulation Trends by Area of Residential Building
REGIONS
Figure 11-1 | Key Regional Trends in Residential Insulation Demand
Figure 11-2 | Regional Residential Insulation Demand Shares, 2017 (million dollars)
Figure 11-3 | Northeast: Residential Insulation Indicators & Market Position, 2017
Figure 11-4 | Midwest: Residential Insulation Indicators & Market Position, 2017
Figure 11-5 | South: Residential Insulation Indicators & Market Position, 2017
Figure 11-6 | West: Residential Insulation Indicators & Market Position, 2017
INDUSTRY STRUCTURE
Figure 12-1 | Residential Insulation Market Share, 2017 (billion dollars)
Figure 12-2 | Leading US Residential Insulation Supplier, 2017
Figure 12-3 | Second Leading US Residential Insulation Supplier, 2017
Figure 12-4 | Third Leading US Residential Insulation Supplier, 2017
Figure 12-5 | Fourth Leading US Residential Insulation Supplier, 2017
APPENDIX
Figure 13-1 | Annual Growth in Real GDP, 2000 - 2017, Compared to 1980 - 2005 Average (percent)
Figure 13-2 | Annual Population Growth, 2002 - 2017 (percent)
Figure 13-3 | New Housing Square Footage by Housing Type, 2002 - 2017
Figure 13-4 | Housing Stock by Year of Construction, 2017 (million units)
© by The Freedonia Group, a division of MarketResearch.com